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    Gold Shizzmoney's Avatar
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    MGM in discussion to buy Boston Encore

    https://www.bostonglobe.com/metro/20...BmM/story.html

    The timing of the talks seems unusual, after the Wynn company wrapped up eight years of salesmanship, design, competition, environmental cleanup, and construction to bring the Encore to the eve of its opening. Along the way, there have been lawsuits, resignations, and the long investigation by state regulators into the accusations against Steve Wynn. Encore would be the first and, by law, the only Las Vegas-style casino in Greater Boston, the most lucrative casino market in the state.

    “I think probably Wynn Resorts wants to wash its hands of Massachusetts and move on,” said Clyde Barrow, a casino specialist at the University of Texas Rio Grande Valley and former UMass professor.

    MGM holds the sole resort casino license for Western Massachusetts, and last August opened the MGM Springfield resort. It was everything the gaming commission hoped it would be — a casino and entertainment center deftly integrated into the city’s long-moribund downtown, providing thousands of jobs and new revenue to the city, neighboring municipalities, and the state.

    Under Massachusetts law, no company can hold more than one casino license, which makes an MGM play for Encore Boston Harbor a tricky bank shot. The company would have to relinquish its Western Massachusetts license and presumably sell MGM Springfield, a project that took years to build, cost about $960 million, but so far has fallen short of projections in gambling revenue.
    Obv, MGM looking to upgrade here. Springfield is a shithole, it will continue to decline, and once Boston goes live its gonna be bumpin. I can see Mohegan buying Springfield. Also LOL that the MA gaming commission as corrective action for Wynn was to have the Wynn CEO Maddox get an "executive coach"
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    Plutonium Sanlmar's Avatar
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    Oh dear god this is one of my favorite topics and shorts

    Bumpin? I love ya man but “bumpin” is not gonna pay back 2.6b with increased competition to come. Boondoggle.

    You caught the delayed opening? I’m sure you did

    Did you see the Boston Globe article talking about salaries? If you have a pulse they are gonna throw you huge dollars. GBCP can hold a 101 about casino margins. Ridiculous and unsustainable. Boondoggle.

    As Everett casino hires many, other businesses feel a pinch
    https://www.bostonglobe.com/business...mlI/story.html

    MGM? The company that is laying off 1000? Yes, Springfield a little too big and after a few months there are already concerns.

    My domestic casino call has been amazing. I had a problem shorting again as Asia (Macau) was a reason for optimism. The Trump trade war with China has solved that. MGM, LVS, Wynn sucking air.

    Massachusetts online sports and lotteries coming soon. That’s another fascinating topic. Half of all convenience store business and often more is lottery. Small operators are shitting themselves.

     
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    Yeah online sports/betting and lottery will def crush some stores...although its those damn scratch offs that ppl are really addicted to

    I do know ARIA just laid off some VPs....mostly in finance, security, and food/beverage...usually means an acquisition maybe coming soon.

    The debt these casino companies rack up is just LOL
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    Quote Originally Posted by Sanlmar View Post
    Oh dear god this is one of my favorite topics and shorts

    Bumpin? I love ya man but “bumpin” is not gonna pay back 2.6b with increased competition to come. Boondoggle.

    You caught the delayed opening? I’m sure you did

    Did you see the Boston Globe article talking about salaries? If you have a pulse they are gonna throw you huge dollars. GBCP can hold a 101 about casino margins. Ridiculous and unsustainable. Boondoggle.

    As Everett casino hires many, other businesses feel a pinch
    https://www.bostonglobe.com/business...mlI/story.html

    MGM? The company that is laying off 1000? Yes, Springfield a little too big and after a few months there are already concerns.

    My domestic casino call has been amazing. I had a problem shorting again as Asia (Macau) was a reason for optimism. The Trump trade war with China has solved that. MGM, LVS, Wynn sucking air.

    Massachusetts online sports and lotteries coming soon. That’s another fascinating topic. Half of all convenience store business and often more is lottery. Small operators are shitting themselves.
    yup...

    here's the playbook and ill be very surprised if im wrong...

    encore hires all these people to massive salaries...things look rosey outta the gate...rich bostonites gamboooooooooooool their asses off at the new shiny toy...customers come from maine, new Hampshire, Vermont, Connecticut, and maybe even new York...gaming revenues look promising...time passes, maybe a year or two...gaming revenues in the hyper competitive east coast gaming market either stagnate or decline...looking for margin improvement those big salaries offered on open are either cut or positions will be eliminated...front line employees will be the first to go, we can get away with having 25% less housekeepers, etc...then once those changes work their way through the system it will be a year or two, gaming revenues will again stagnate or go down...margins need to be improved, then they start cutting the executive ranks to make the cuts actually matter....

    it was always thought to be a great thing to own a casino...wouldn't touch one on the east coast unless it was aimed at locals and didn't have a hotel...

     
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    customers come from maine, new Hampshire, Vermont, Connecticut, and maybe even new York...gaming revenues look promising.
    I think Encore will also draw in a lot of international money, FWIW

    but your overall point is correct: casinos are generally a losing business and it probably wont have the success investors think it will be in the end
    http://www.miraclecovers.com

    "Donk down, that’s what you say to someone after they have lost 28K straight?" - Phil Hellmuth, online

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    Diamond Tellafriend's Avatar
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    Quote Originally Posted by Shizzmoney View Post
    but your overall point is correct: casinos are generally a losing business and it probably wont have the success investors think it will be in the end


    I certainly don't disagree; but why do you think that is?

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    Quote Originally Posted by Tellafriend View Post
    Quote Originally Posted by Shizzmoney View Post
    but your overall point is correct: casinos are generally a losing business and it probably wont have the success investors think it will be in the end


    I certainly don't disagree; but why do you think that is?
    ill speak from an east coast perspective...maybe if you can get a casino somewhere else where it's not so crowded it would be better...

    look at what you have here...just gonna go off the top of my head I might miss some...

    NJ: ocean, resorts, bally's, caesars, trop, Borgata, golden nugget, hard rock, harrah's
    Eastern PA: sands, sugarhouse, parx, harrah's philly, valley forge, live! (will be opened I think in 2020, right by the stadium complex in philly...they have already torn down the hotel where it will be constructed)
    MD: Live!, horseshoe, MGM, Hollywood
    DE: I don't know the names, but I believe they have 2-3 casinos in that state
    CT: Mohegan, foxwoods
    NYC: resorts world and there's another one I can't think of the name

    you could probably add upstate NY casinos in here too as they are probably close enough, but I think you get the point...look at the competition for gaming dollars in the most populous part of the country...it's fucking nuts...what are you going to do to differentiate yourself from the competition? blackjack is blackjack, craps is craps, slots for the most part are slots...how are you gonna get people to come to your place consistently? better offer some good deals, which cut into your margins...

    house always has an edge but when you have a lotta houses the edge starts to shrink...
    Last edited by GambleBotsChafedPenis; 05-27-2019 at 02:50 PM.

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    Quote Originally Posted by Shizzmoney View Post
    customers come from maine, new Hampshire, Vermont, Connecticut, and maybe even new York...gaming revenues look promising.
    I think Encore will also draw in a lot of international money, FWIW

    but your overall point is correct: casinos are generally a losing business and it probably wont have the success investors think it will be in the end
    no kidding? never thought of that angle...you think euro money is gonna travel to boston to gamble?

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    Quote Originally Posted by GambleBotsChafedPenis View Post
    Quote Originally Posted by Shizzmoney View Post

    I think Encore will also draw in a lot of international money, FWIW

    but your overall point is correct: casinos are generally a losing business and it probably wont have the success investors think it will be in the end
    no kidding? never thought of that angle...you think euro money is gonna travel to boston to gamble?
    Yes.....Boston has a lot of international banking folks here. I am a Spurs can...and when they played Ajax (Holland), I ran into a lot of Ajax fans at the Spurs bar who live here now that work for intl banks and firms like ING. Also, there is a ton of intl money at living here already for colleges...young trust fund kids from Saudi and Japan and
    India/UK with disposable income.

    Also, for the casino question in why they tend to fail: it starts at an executive level. Most of these places are horribly mismanaged. Foxwoods comes to mind....they shouldnt be that deep in the hole, but the tribe execs who run it pay themselves way too much money while slashing everything else for consumers and employees. They just announced they are gonna update the buffet....this after 15+ years of it being shitty. But we all know why they doing it (Encore) not because they are finally listening to the customers.
    http://www.miraclecovers.com

    "Donk down, that’s what you say to someone after they have lost 28K straight?" - Phil Hellmuth, online

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